Question

A cell phone business, in which the franchisor manufacturer a product and licenses a dealer to sell it in an exclusive territory, is an example of a(n) _______.

Answer 1

Answer:

distributorship

Explanation:

A distributorship is a type of franchise where a manufacturer or service provider gives the the franchisee the inclusive right to sell there products or services within a certain geographic area.

For example, Sprint will only have one store in the downtown area, and other stores inside malls, but you will not find to Sprint stores within one same mall. Each store is granted an exclusivity right over the mall or some neighborhood.